The Indian rupee builds on its recovery at Tuesday's open after the Reserve Bank of India announced more measures to alleviate pressure on the currency. The rupee's biggest single-advance in six months came after the RBI unveiled a series of measures to curb dollar demand. The central bank reinforced that with direct market intervention, selling dollars to support the currency, according to traders.The RBI has since taken further steps, widening the scope of a recently introduced cash deposit requirement for foreign-exchange hedges to cover all such transactions, including those used to hedge banks' own assets and liabilities. derivatives to clients. Lenders with units in India’s International Financial Services Centre and certain primary dealers, which were allowed to offer non-deliverable rupee derivatives to non-residents for any purpose, can now offer them only for hedging, the RBI said. The dollar retreated in Asian trade on Tuesday after a holiday in some US markets, while bond yields and oil prices eased, accompanied by a slide in global stocks. The US dollar index of the greenback's strength against a basket of six currencies, slid 0.2% to 102.39, stumbling as it approached its highest since April last year. The reversal in energy costs and climbing US Treasury bond yields undermined some of the dollar's recent strength against major peers, with no sign of a safe-haven dash for the greenback as equity markets sold off. Brent crude futures fell 1.4% to $105.20 as traders weighed the prospect of more diesel supplies from Russia, amid an elusive ”energy truce” between Moscow and Kyiv declared by US President Donald Trump. Along the same vein, Oil prices fell on Tuesday and were on track ?for their first decline in nearly a week, as traders assessed supply risks from attacks on Saudi Arabia while weighing the prospect of additional diesel supplies from Russia. Brent crude futures fell $1.30, or 1.2%, to $105.35 a barrel by 0329 GMT, while US West Texas Intermediate crude futures were down $1.25, or 1.3%, at $92.49 a barrel. The euro appreciated 0.2% to $1.1177 on Tuesday, while the British pound was up 0.1% at $1.3219. The yen strengthened 0.2% to 158.215 yen against the dollar after Bank of Japan data showed wholesale prices rose 6.8% in the year to September, missing a median market forecast of 7.6% but still enough to justify market fears of higher interest rates.Gold ticked up on Tuesday as oil prices slipped, while markets focused on the upcoming US inflation data for fresh signals on the Federal Reserve's interest-rate trajectory.Spot gold was up 0.4% to $4,185.69 per ounce by 0356 GMT after hitting a one-week peak on Monday. US gold futures for December delivery rose 0.5% at $4,209.90. Among other metals, spot silver gained 0.2% to $60.42, platinum added 0.7% to $1,697.40, and palladium firmed 0.1% to $1,144.30.
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The euro rebounded on Tuesday and was on pace for its strongest move higher in a month after falling to its lowest in 17 months in the prior day, as a pullback in French government bond yields cooled fears about strain in euro zone debt markets. The euro zone's currency climbed 0.28%, on track for its biggest daily gain since September 3, at $1.1252. the currency had slid to its lowest since May 2025 on Monday at $1.116, following a drop of more than 1% in the prior week, its fourth straight weekly decline. The dollar index , which measures the greenback against a basket of currencies, fell 0.26% to 101.89 and was on pace for its biggest daily drop since September 25. Bond markets around the world have seen yields rise due to expectations of sharp central bank rate hikes as energy prices have jumped due to the US-Israeli war with Iran and fanned inflation, as well as concerns about government finances. France is at the heart of the European market concerns. The French government is seeking to enact an unpopular 2027 budget to lower its deficit and contain its record-high debt load, a tall order in a deeply divided parliament as political factions position ahead of next year's presidential election. With inflation already rising on soaring energy costs and higher yields increasing household and corporate borrowing costs, further euro weakening could leave the European Central Bank caught between fighting inflation and calming bond markets.
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